Boeing charged the U.S. Air Force a markup of 7943% for soap dispensers on C-17 military transport aircraft.

This is stated in a new U.S. Department of Defense Inspector General report.

The report (page 17) compares the cost of a commercial soap dispenser and a product installed by Boeing. It turns out that the price of the company’s product is 80 times higher than that of its analogs.

This resulted in the U.S. Air Force budget overpaying more than $149 thousand for soap dispensers.

It is worth noting that the increase in cost can be explained by the fact that Boeing dispensers are certified for use in air transport, while their analogs are not.

However, the report emphasizes that the functionality of soap dispensers, regardless of the application, is similar.

In total, the report presents a sample of 46 spare parts for the C-17 Globemaster, 12 of which are overpaid by the USAF (tables on pages 27-28).

Similarly, high markups were discovered in other parts, including pressure sensors, which have a markup of 3556% compared to their counterparts.

As a result, 12 parts were purchased with an overpayment of more than $992 thousand.

Layoffs at Boeing

On October 12, Militarnyi reported that Boeing announced 17,000 job cuts and a loss of $5 billion.

In his address to employees, Boeing CEO Kelly Ortberg reported that the company had been forced to reduce its workforce to meet the financial realities.

A strike by 33,000 workers on the US West Coast has halted production of some new aircraft. Boeing recorded losses of $5 billion in its defense and commercial divisions.

Boeing’s Defense, Space & Security division develops and manufactures a wide range of defense products used worldwide.

For example, in the third quarter, Boeing delivered three F-15s, and ten aircraft have been delivered since the beginning of the year. As for the F/A-18, one and five aircraft, respectively, are being referred to, and one T-7A training aircraft. It is possible that the strikes will affect the production of the new combat aircraft.